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News Flash -Austin and San Antonio MSA Real Estate Markets

Austin MSA Real Estate Market

Single family home sales continued to hold steady throughout the Austin real estate market in July 2017, increasing 2.8% year over year to 2,892 sales.

The Austin Housing Market:

Single family home sales volume continued to show growth across the Austin MSA in July according to the mid-year Central Texas Housing Market Report and rose 2.8% year over year.

Brandy Guthrie, 2017 President of the Austin Board of REALTORS®, commented: “In years past, the high demand of the summer selling season has further constrained inventory levels and further pushed up home prices. This year has been different, with steady gains in sales volume as well as listings and inventory throughout the summer. During a month when housing inventory should reach its lowest point of the year, housing inventory across the Central Texas region is at its highest point since fall 2012.”

The 2017 Austin Quarterly Briefing recently released by Metrostudy showed that the pace of single-family home starts in the Austin area are at their highest level in 10 years, with approximately 1,000 more home starts in the second quarter of 2017 than the year prior. More than half of these home starts were in the $250,000-$299,999 price category, with Cedar Park/Leander West, Pflugerville and Kyle/Buda comprising nearly one-third of home starts activity. Metrostudy’s boundaries cover Hays, Williamson and Travis counties.

In the five-county MSA, the median home price for July rose to $301,332, an increase of 5.2% year over year.

Housing inventory levels surpassed 3.0 months of inventory in multiple markets in July 2017. In the Austin-Round Rock MSA, the monthly housing inventory levels for single-family homes increased 0.4 months to 3.2 months of inventory. An inventory level of 6.0 months is a balanced market in which the supply and demand for homes is in equilibrium.

The Austin Economy:

The Austin MSA reported 28,000 net new jobs in the 12 months ending June 2017, a steady increase of 2.8% year over year.

According to the Texas Workforce Commission, unemployment in the Austin – Round Rock MSA increased slightly from 3.2% in May 2017 to 3.4% in June 2017, which is extremely tight and well below the state and national unemployment average of 4.7% and 4.5%, respectively.

San Antonio MSA Real Estate Market

The San Antonio area housing market continues its record pace with volume increasing 6% and the average sales prices increasing 4% year over year. Demand for new housing remains sound with tight inventories, and the housing market remains fundamentally sound as we settle into the summer buying season.

The San Antonio Area Housing Market:

July 2017 had a total of 2,981 sales vs 2,822 in July 2016, an increase in volume of 6%.

The average home price increased 4% year over year in July, reaching $257,540 vs $246,472 in July 2016.

The median price of a home sold in July was $218,800 vs $212,700 in July 2016, a 3% increase year over year.

In July, just over half the homes sold were priced in the mid-range between $200,000 and $500,000 while homes priced under $200,000 made up nearly 43 percent of the homes sold. Homes priced over $500,000 accounted for 5.4 percent of the month’s sales, 31 more homes than this time last year.

Yvette Allen, SABOR’s board chairwoman, said San Antonio is on track for another record-breaking year for home sales, and although prices continue to rise, they’re still lower on average than other major metro areas.

Total single-family home months of inventory increased 0.1 months from June to 3.9 months in July. Anything below 6.0 months’ supply is considered a tight market.

“Typically, inventory below six months favors sellers while inventory between six to eight months is considered balanced. In the San Antonio area, we have remained under four months of inventory for the last two years and under six months for nearly five years,” said Angela Shields, SABOR’s President and CEO.

The San Antonio MSA Economy:

The San Antonio MSA reported a robust 24,300 net new jobs in the 12 months ending June 2017, a healthy increase of 2.4% year over year.

According to the Texas Workforce Commission, unemployment in the San Antonio MSA decreased to 3.9% in June 2017 from 4.1% a year earlier, still well below the state and national unemployment average of 4.7% and 4.5%, respectively.

Should you have any questions, please feel free to contact our office at (713) 535-2250.